130 PART | III ITS business models
• Step 2: This step focuses on the analysis of competition (products and ser-
vices) and their position in the market and community.
• Step 3: The third step involves the set up of deployment scenarios and also
focuses on the individual and joint exploitation of the various assets. In this
step, it defines the market and business models, specifies the collaboration
roles, and the cost and revenues from each collaboration. This enables the
calculation of the net return over time for each type of market player, being
commercial or public.
• Step 4: In this step, the business models are validated by the consortium
members and the plans for their deployment are fixed.
• Step 5: A set of communication activities follows, which aims in raising
awareness of the new products/services and solutions and their goals. The
proper organization, scheduling, and implementation of such activities are
expected to raise their impact especially among stakeholders that can be
interested for joint exploitation.
• Step 6: The last step comprises the refinement of the business and exploita-
tion plans, as well as the final agreements on the service level, the joint ex-
ploitation models and possibly the establishment of new legal entities (joint
ventures) when needed.
11.3 Marketing ITS solutions in the automotive market
11.3.1 Market potential—OEM point of view
For an original manufacturers of equipment (OEM), the customer, distribution
networks, and addressed customer segments are clearly settled (considering
only the current situation and not taking into account future ownership oppor-
tunities and market possibilities). The OEM key contributions for ITS-related
solutions are manifold, ranging from test vehicles and test-tracks, to fleets and
fleet data, as well as, supplier management and unique distribution networks
and impact on domain and standards. The technology developed in the context
of ITS will in return be innovative and unique functionalities and customer ser-
vices, which can be offered the end customer of automated driving vehicles in
general, and automated, connected, and electrified vehicles in particular.
11.3.2 Market potential—supplier point of view
Following the automotive supply pyramid, Tier1 and Tier 2 come into play, in-
volving more members of the ITS ecosystem. The strength of the OEM in car
design and marketing, in collecting parts and assembling the final product is com-
plemented by the specialization of Tier 1 suppliers in making “automotive-grade”
systems. Although they serve many car companies, they strongly cooperate with
only a few OEMs. The suppliers of Tier 2 have a wider customer range, includ-
ing customers out of the automotive industry, demonstrate high specialization
and a reduced motivation to produce specifically automotive-grade components.